managerial policy

1. Corporate Governance<br />Question 1 <br />According to Cadbury (2002), corporate governance is an issue of power and: <br />a) Rights <br />b) Accountability <br />c) Profit <br />d) Appropriability <br />Question 2 <br />The OECD argues that corporate governance problems arise because:<br />a) Ownership and control is separated <br />b) Managers always act in their own self interest <br />c) Profit maximization is the main objective of organizations <br />d) Stakeholders have differing levels of power <br />Question 3 <br />The Institute of Chartered Accountants in England and Wales considers argue that one particular stakeholder group should have primacy over all other groups. Which stakeholder group are they referring to?<br />a) Customers <br />b) Managers <br />c) Shareholders <br />d) Society <br />Question 4 <br />An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern: <br />a) Conglomerate <br />b) Corporation <br />c) Company <br />d) Firm <br />Question 5 <br />The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and: <br />a) Fiduciary duty <br />b) Stakeholders <br />c) Shareholders <br />d) Transferability <br />Question 6 <br />What makes a corporation distinct from a partnership?<br />a) If the members of a corporation die, the corporation remains in existence providing it has capital <br />b) If the members of a corporation die, the corporation ceases to exist <br />c) A corporation cannot own property <br />d) A corporation cannot be held responsible for the illegal acts of its employees <br />Question 7 <br />The term 'asymmetry of information' means information in a corporation is: <br />a) Transferable to all stakeholders <br />b) Not transferable to all stakeholders <br />c) Not equally transparent to all stakeholders <br />d) Equally transparent to all stakeholders <br />Question 8 <br />The view that sees profit maximization as the main objective is known as:<br />a) Shareholder theory <br />b) Principal-agent problem <br />c) Stakeholder theory <br />d) Corporation theory <br />Question 9 <br />Who is the most famous exponent of shareholder theory?<br />a) Michael Porter <br />b) Adam Smith <br />c) Milton Friedman <br />d) Peter Drucker <br />Question 10 <br />The key protagonist of stakeholder theory is:<br />a) Adam Smith <br />b) R. E Freeman <br />c) Adrian Cadbury <br />d) E Sternberg <br />Question 11 <br />Where an organization takes into account the effect its strategic decisions have on society, this is known as:<br />a) Corporate governance <br />b) Business policy <br />c) Business ethics <br />d) Corporate social responsibility <br />Question 12 <br />Which intervention resulted from the Enron scandal?<br />a) The Hampel Committee <br />b) The Sarbannes-Oxley Act <br />c) The Greenbury Committee <br />d) The Cadbury Committee <br />Question 13 <br />Executive pay in the UK was reviewed by: <br />a) The Greenbury Committee <br />b) The Hampel Committee <br />c) The Cadbury Committee <br />d) The Higgs Committee <br />Question 14 <br />Kakabadse and Kakabadse (2002) argue that existing corporate governance models in general are:<br />a) Taking multiple stakeholder needs into account <br />b) Increasing social inequalities <br />c) Becoming more transparent <br />d) Promoting environmental damage <br />Question 15 <br />In Japan, some corporations operate within the philosophy of 'kyosei'. The term 'kyosei' means:<br />a) No man shall be richer than another man <br />b) All stakeholders are equal <br />c) Living and working for the common good <br />d) If the corporation is bad, society is bad <br />